Reference no: EM133124868

Assume the following:

Function A: [Q₀ =1, P₀ =5] and [Q₁ =2, P₁ =1]

Function B: [Q₀ =1, P₀ =1] and [Q₁ =5, P₁ =2]

- What is the numerical elasticity of Function A?  Blank 1. Fill in the blank, read surrounding text.

- What is the verbal description of the elasticity of Function A?  Blank 2. Fill in the blank, read surrounding text.

- Does Function A represent a necessity or luxury?  Blank 3. Fill in the blank, read surrounding text.

- What is the numerical elasticity of Function B?  Blank 4. Fill in the blank, read surrounding text.

- What is the verbal description of elasticity for Function B? Blank 5. Fill in the blank, read surrounding text.

- Function B represents a decreasing cost industry. (True/ False?)  Blank 6. Fill in the blank, read surrounding text.

- Is Function A more likely a supply or demand curve?  Blank 7. Fill in the blank, read surrounding text.

- Is Function B more likely a supply or demand curve?  Blank 8. Fill in the blank, read surrounding text.